Where Does Your Money Go

These deductions include: income tax, employment insurance (EI) and pension plan (CPP) and can reduce your net pay by as much as 25 to 35 percent.

• Income Tax: every year, all working people in Canada pay income tax. Usually the tax is deducted from your paycheque. Even though income tax is deducted, you are still required to file an income tax return every year.
• Employment Insurance (EI): every working person pays into this program. If you lose your job you may receive payments until you find a new job.
• Canada Pension Plan (CPP): every working person over age 18 pays into this fund. When you retire from working, starting when you turn 60 years old, you may receive retirement benefits.
• Other deductions: you may have deductions for additional medical benefits (for dentists or eyeglasses), life insurance, additional pension or union dues.

Your employer cannot deduct any more money from your paycheque without first having you agree to it in writing.